BBI economic report construction machinery trade and rental

The second quarter of 2019 brought economic momentum and good sales figures for dealers and lessors. Industry companies expect the growth momentum to slow down in the third quarter.

After the dynamic start-up quarter, the second quarter of 2019 in the trade with construction machinery and construction equipment also showed its lively side and brought good sales figures for the dealers. This was shown in the current bbi business survey among companies in the industry. According to this, the development even picked up slightly in the second quarter and 45 percent of retail companies recorded an increase in their sales figures compared to the same quarter of the previous year. A good 40 percent of the companies were able to keep the good figures and posted sales at the level of the comparable quarter. In contrast, a decline in sales figures was reported by 15 percent of those surveyed.

Rental continues to benefit from high demand

The landlords of construction machinery and construction equipment were also largely satisfied with the course of the second quarter, which gave the companies a high level of occupancy in the rental parks. The lively economic development was reflected in good sales figures – in the bbi business survey, 35 percent of the landlords reported an increase in sales compared to the strong comparative quarter of the previous year. A further 45 percent of the companies that were able to maintain the good sales figures from the corresponding quarter of the previous year also had reason to be satisfied. In the meantime, a fifth of the test participants were unable to benefit from the general momentum and saw a decline in sales compared to the previous quarter.

Good sales level with slow slowdown in growth momentum

In accordance with the general economic forecasts, dealers and lessors of construction machinery and construction equipment are assuming that growth momentum will slow overall with a high level of sales at the same time. For example, 60 percent of dealers and 65 percent of landlords expect the good sales figures from the previous year’s comparable quarter to be maintained in the current quarter. On the other hand, good prospects and possible sales increases were forecast by 25 percent of the dealers and landlords. In contrast, 15 percent of retail and ten percent of rental companies expect sales to decline in the third quarter.